(Washington, DC) — Today, Senator James Lankford (R-OK) of the Finance Committee introduced Smart Approaches to Marijuana Action (SAM Action)-drafted legislation alongside Senator Pete Ricketts (R-NE) of the Budget Committee to prevent a $2.3 billion marijuana industry tax cut. Their bill (S.471) would amend Section 280E of the tax code to include marijuana by name. According to Section 280E, businesses trafficking in Schedule I and II drugs are unable to deduct business expense. Reclassifying marijuana as a Schedule III drug would remove the federally illegal drug from Section 280E’s requirements, making billions for the marijuana industry and losing billions for the federal government. S.471 was introduced ahead of budget reconciliation, in which the bill’s supporters hope it will be passed into law. Dr. Kevin Sabet, President and CEO of SAM Action, released the following statement about the bill’s introduction:
“We thank Senator Lankford for his strong leadership in both fiscal responsibility and drug policy. The federal government should not be in the business of giving tax relief to the federally illegal, addiction-for-profit marijuana industry. This legislation would prevent deficit increases while ensuring that taxpayers don’t foot the bill for the revenue gap made by tax write-offs for people who choose to violate federal law and poison our kids.
“When SAM’s federal affairs team pitched Senator Lankford on this bill last year, it was just a pipe dream. But in a short couple of months, the Senator’s team took the idea and ran with it. We are grateful for his courage in standing up and doing the right thing. We look forward to this bill gaining support and hopefully being added to the budget reconciliation package.”